Alphabet, Amazon, Microsoft, and Meta accelerate capital raises to support record infrastructure spending on artificial intelligence and cloud expansion.
Major technology firms are turning to debt and equity markets to finance a $700 billion spending surge on AI and cloud infrastructure this year, up from $600 billion previously. The shift marks a departure from traditional cash-funded investments as costs escalate rapidly.
Alphabet, Amazon, Microsoft, and Meta signaled in April that AI-related expenditures would not decelerate. Amazon alone plans to raise at least $25 billion via U.S. bond sales, including an eight-part offering of floating and fixed-rate notes with maturities up to 40 years. The company also set records with a C$14 billion Canadian dollar-denominated bond issuance in June and is preparing its first Swiss franc-denominated offering.
The AI investment boom has entered a phase characterized by soaring physical infrastructure costs and increased reliance on external capital, according to a February analysis. Market observers note the trend reflects both competitive pressures and the capital-intensive nature of scaling AI capabilities.